The new BKT carbon black plant at the company’s Bhuj site in India is expected to reach 100 per cent capacity by 2021.
The tyre maker said that at the end of the first quarter of financial year 2019, the plant had a carbon black production output of 60,000 tonnes increasing to 80,000 tonnes in the second quarter and will reach its full production capacity of 130,000 tonnes by 2021.
Around 50 per cent of the carbon black produced at the new plant is being used in BKT’s tyre manufacturing process, while the other remaining 50 per cent is sold on the market. Besides, 80,000 MT of the present production are in hard grade, whereas further capacity for 50,000 MT in soft grade is under commissioning.
“This plant makes the difference and is definitely going to reward us. This significant $75m provides vital raw material within the tyre manufacturing supply chain,” Mr. Rajiv Poddar, Joint Managing Director of BKT, explains. “The decision to produce this component in-house is part of our strategy. Not only does the new plant provide us with manufacturing independence, but it also ensures a better quality of our raw materials, since we have now precise upstream control over the entire process.”
The vertical integration of carbon black in the tyre production process is hence another step forward in the development of the Bhuj production site, which was inaugurated back in 2015, and has been planned for enduring expansion in order to respond to the ever-growing demand for tyres.